Chidambaram's Budget disappoints NRIs

Dubai, Mar 1 (UNI) Indian businessmen based in the UAE have given their thumbs down to the new Indian Budget for hiking the dividend distribution tax and for ignoring NRI interests.

Besides the additional one per cent tax on incomes and the tax on dividends paid by companies (dividend distribution tax) which has been raised to 15 per cent from 12.5 per cent, their ire is also directed at the Budget's failure to tackle the problem of inflation.

''Other than freezing the peak customs duty at 10 per cent and cutting excise duties on certain items, there was not much in the Budget that would be seen as anti-inflationary,'' said Mr Suresh Kumar, Chief Executive and President of Emirates Financial Services and Indian Business and Professional Council.

The Budget is for the long-term benefit of the country, but not certainly a ''populist'' one. There has not been much reduction in corporate and income tax slabs, except for a minor relief in the exemption limit, Mr Kumar said.

''It is a disappointing Budget for the corporate world, especially introduction of additional cess on all taxes and hike in DDT,'' Mr Raju Menon, managing partner of Morison Menon Chartered Accountants, said.

Mr Menon said the minimum alternative tax (MAT) in the information technology and business process outsourcing sectors would harm the two key growth areas.

Mr Kamal Vachani, Regional Director of Electronics&Computer Software Export Promotion Council and Director of Al Maya Group, welcomed the FM's announcement to make India a preferred destination for the manufacture of semi-conductors and other high technology IT products.

Mr Bharatbhai Shah, a veteran businessman, faulted the Budget for not being of ''much concern'' to overseas Indians.

''Not even a mention about NRIs will surely come as a big disappointment to millions working abroad, especially in the Gulf region,'' EMKE Group managing director Yousuf Ali said.

Mr T K Raman, COO, Finance House, said Mr Chidambaram gave tax payers only marginal relief by increasing the tax exemption limit from Rs 1,00,000 to Rs 1,10,000. ''Even this relief is partly nullified by the proposed one per cent education cess that personal tax payers will have to pay.'' The Finance Minister Palaniappan Chidambaram should have given more emphasis on containing the fiscal deficit and bringing it down to maintain the nine per cent growth rate, majority of corporates opined.

Hoever, they lauded the proposal to increase spending on education, healthcare, infrastructure, agriculture and development of Mumbai as a global financial centre.

UNI